Argentina’s CNV finalizes regulations for virtual asset service providers, focusing on registration, cybersecurity, asset custody, and anti-money laundering practices to enhance user protection and stability in the crypto market. Registration deadlines are set for various entities, with noncompliance leading to operational bans. The regulations reflect a significant trend towards increasing cryptocurrency adoption amidst economic instability.
Argentina’s National Securities Commission (CNV) has published final regulations for virtual asset service providers (VASPs) as of March 13. These new rules include guidelines for registration, cybersecurity, asset custody, money laundering prevention, and risk disclosure. The aim is to ensure transparency, stability, and user protection within the cryptocurrency ecosystem.
The final regulations mandate the separation of client and company funds, annual audits, and monthly reporting to the CNV, according to Argentine tax lawyer Diego Fraga. VASPs must register with the PSAV (Registry of Virtual Asset Service Providers) by 2024, with strict penalties for noncompliance, including potential court-ordered operation bans.
Entities registered with the PSAV have deadlines to adhere to the rules: individuals must comply by July 1, companies based in Argentina by August 1, and foreign companies by September 1. CNV President Roberto E. Silva emphasized that noncompliance will lead to operational prohibitions in Argentina.
The push for stricter crypto regulations follows increased adoption driven by the depreciation of the Argentine peso, with clearer guidelines emerging following a CNV directive requiring crypto issuer registration under securities laws. By mid-2024, Argentina had become the leading country in Latin America for crypto inflows, surpassing Brazil with approximately $91 billion between July 2023 and June 2024
Crypto acceptance is still growing in Argentina despite previous scandals, specifically the recent controversies surrounding President Javier Milei and the memecoin LIBRA. The potential for regulatory safeguards and positive market trends seems to promote an advantageous environment for crypto investors despite the challenges.
Argentina has implemented new regulations for virtual asset service providers, aiming to establish a safer and more transparent crypto ecosystem. The rules require registration, asset management protocols, and compliance deadlines for existing VASPs. This regulatory framework comes in response to increased cryptocurrency adoption following economic challenges, indicating an evolving financial landscape in the nation despite recent controversies.
Original Source: cointelegraph.com
